Rating of Belarusian banks’ efficiency according to the results of Q3 2014: banking system amid the excess of resources

Ratings

17:57 | 12.11.2014 | Business-News

In Q3, the banking system functioned in the conditions of ruble liquidity surplus (the surplus reached BYR 4-6 trillion), the availability of cheap funding, which allowed banks to reduce the yield on ruble deposits and the cost of credit sources in the national currency at the same time.

In late June, the yield on short-term (up to 3 months) deposits for individuals was 28-36% per annum, but in early October already, the rates on short-term ruble deposits decreased to 16-31% per annum.

In Q3, the dropping rates affected the flow changes of new fixed-term deposits for economic entities. In August, there was recorded the minimum amount of new raised bank fixed-term deposits of legal entities in rubles in the current year – BYR 12,967.2 billion.

The National Bank of Belarus in Q3 continued to pursue the interest rate policy aimed at increasing the availability of credit sources for the national economy. In July-September, the controller reduced the refinancing rate twice. After July 16, the rate was reduced from 21.5% to 20.5%, after August 13, the refinancing rate has amounted to 20%.

In Q3, the average rate on new ruble loans for business entities decreased to 33.3% per annum from 36.6% in June.

The public and private sector debts under loans in the national currency in Q3 rose by BYR 5,258.7 billion. To compare, the Q1 increase in debt totaled BYR 1,976.4 billion and in Q2 – BYR 1,992.8 billion.

In July-September, the gradual recovery of the consumer loan demand continued on the part of individuals. In September, the highest growth of debt under such loans in 2014 was recorded amounting to BYR 344,1Bn.

Belgazprombank, which has been the Rating’s undisputed leader for two quarters in a row, gave its first place to the Priorbank in Q3. The bank could lead the total ranking thanks to the improved positions in sub-ratings about the ratio of net profit to capital and assets. The Priorbank’s profit in Q3 turned out to be the highest in the current year due to the growth in the net interest revenue, net commission revenue, net gains on foreign currency transactions and other income.

Belgazprombank was pushed off the 1st place having lost by one point in the sub-rating the ratio of net profit to capital and assets. In Q3, the bank received somewhat more profit than in Q2, but the ‘underperformance’ in comparison with Q1 exceeded the amount of BYR 62.7 billion. Amid the increasing net interest and commission revenue in July-September against those in April-June, Belgazprombank reduced its net profit on foreign currency transactions. As for the transactions with securities, the bank even had a net loss amounting to BYR 9.0 billion.

Following the July – September period, MTBank managed to get the maximum quarterly profit in 2014 due to increased net interest revenue, net commission revenue and other income. This allowed it to be the third in the top-three efficient banks.

Being the 4th in the Rating, BSB Bank slightly increased its net interest revenue and got the maximum net revenue in Q3 on the transactions with precious metals and gemstones. However, the net profit on foreign currency transactions in July-September proved to be the least for the bank in 2014. As a result, the BSB Bank profit in Q3 was 1.5 times more than in Q2, but less than in Q1.

BNB Bank, formerly sharing the fifth-sixth line with BelVEB Bank, ranked the 5th most efficient bank now. It happened because of the bank’s greater number of points in the ratio of net profit to assets. The maximum ytd value got the net commission revenue, and the net profit on transactions in foreign currency over Q3 almost reached the amount received in H1 2014. In July-September, the bank also incurred the minimal operating expenses.

The biggest breakthrough in Rating if compared with Q2 was made by Trade Capital Bank, formerly being the 25th, and now – occupying the 13-15 position. This bank’s profit in July-September was 3.1 times higher than the profits earned over January to June. In Q3, the TC Bank's net profit on foreign currency transactions has almost tripled.

Rating position

Bank name (1)

Assets rating, number of points (7)

Rating in the ratio of net profit to total assets, number of points (8)

Rating in the ratio of net profit to the capital, number of points (9)

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